Bitcoin Streak Faces Threat from Softer Demand and Economic Uncertainty

Bitcoin's four-week winning streak has been put to the test as demand for the cryptocurrency appears to be softening. Despite a minor 1% weekly gain, marking its fourth straight weekly advance since April, the rally showed signs of losing momentum after a midweek reversal weakened buying pressure.

The price of Bitcoin climbed to a weekly high of $67,000 on Tuesday before dropping 5%, as short-term holders sold near their breakeven level. This decline reinforced resistance overhead and highlighted that buyers are still struggling to push Bitcoin beyond its recent trading range of $63,000 to $68,500.

The Bitfinex Alpha report noted that the short-term holder cost basis has stabilized near $68,500, which has become a key resistance area that will likely require stronger demand for Bitcoin to break above it. However, so far, this demand has remained limited despite recent ETF inflows, with institutional participation continuing to weaken.

Another sign of softer institutional participation is the Coinbase Premium Index, which has remained below zero for more than 60 consecutive trading days. Bitfinex described current market conditions as a typical summer slowdown, with 30-day spot trading volumes at just 62.4% of their yearly average.

The report also noted that rising US diesel prices continue to pressure transport and production costs, raising the risk that inflation could remain elevated. This, combined with broader economic uncertainty, has added to Bitcoin's cautious outlook.